Dyala Ali Kassem
Principles of marketing
American university in the emirates
Case 1: Kellogg Buys RXBAR
There are four primary strategies in marketing that companies use to advertise for their products across the world. First, it’s the market penetration; Market penetration is a process that companies concentrate on selling an existing product than producing a new one to increase the market shares. Second, it’s the market development; Market development is a small strategy that companies use to advertise for the new product into the market, either by extending their selling rates or the usage of the new merchandise to do new things. Third, it’s the product development; Simply it’s the procedure of developing new products by changing the taste, recipe and ingredients to satisfy special customer needs in different segments such as low fat and sugar free cereals. And last, it’s the diversification; It’s a method where companies depend on improving their business by producing a new product and distributes them among the market and by that they grow bigger and more successful.
RXBAR company relates on product development method, they focus on bringing creative protein bars for a healthy type of customers by concentration on nutritious and ingredients. On the other hand, they are using the diversification method to attract consumers by using different organic ingredients and nutritious.
Kellogg company strategy relates to diversify its organic products and collecting protein bar innovations such as Chicago bar company which makes the RXBAR, taken into consideration it’s the fastest growing brand in the United States. Kellogg also use the differentiate strategy to provide their products in different channels.
Kellogg’s counts on the market development method as they develop a range of products to satisfy all consumers tastes and ages and by that they have a 42% of the market shares in UK alone. Kellogg’s maintains a leading company of producing cereals and snacks as cookies, cereal bars, waffles and vegetarian food. Its products are manufactured in 18 countries and distributed in more than 180 countries around the world. They have recorded a massive success by selling special K brands and improving the company growth year by year, it’s a product development method that Kellogg’s is using to satisfy all tastes and ages of customers which will maximize the company shares in the market.
From the four strategies, I would choose the product development, simply because they don’t relay on diversification only, but they are also improving by producing new products for different type of customers.
The marketing 4Ps of Kellogg Co:
Product – Kellogg’s relates on producing special K range and additional to zero sugar cereals to satisfy all types of customer needs.
Price – since cereal products are sensitive in the market, Kellogg’s are one of the biggest competitive company and the prices of their products is in a suitable range for consumers comparing to other brands.
Place – Kellogg’s will make special offers for the stores with large sale rates to encourage other products of special K at the market.
Promotion – to attract the customers with the brand, Kellogg’s use promotional methods like advertising, digital marketing, direct marketing and sampling.
In a conclusion, Kellogg’s use different methods of marketing to maintain their strong position in the market among all other competitive brands.
Kellogg’s are aiming to expand their product line and sale rates all around the world, yet they are successful with a rate of 42% of the UK market alone, other than the high rates in worldwide.